UK: Consumer Duty – FCA publishes feedback and Dear CEO letter
Following its policy statement PS22/91 and finalised guidance FG22/52 on the Consumer Duty, the FCA has recently published more guidance on this area in the form of (i) feedback for all firms and (ii) a Dear CEO letter. It is important for firms to consider the content of the feedback and letter as the FCA has stated that it will focus its supervision on, and may ask for evidence of, how firms have made consequential changes to their business.
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EU: EIOPA aims to strengthen oversight of third country governance arrangements with supervisory statement
On 3 February 2023, the European Insurance and Occupational Pensions Authority (EIOPA) published a supervisory statement (EIOPA-22/362) aiming to strengthen supervision and monitoring of EU insurance undertakings and intermediaries when using governance arrangements in third countries to perform functions or activities. The Statement emphasises that firms should ensure that third country branches primarily serve the market in which they are located and do not act as “outposts” for firms which in turn “become empty shells”.
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“Plane” English: High Court upholds no-assignment clause to prevent transfer to insurer
In the recent important case of Dassault Aviation SA v Mitsui Sumitomo Insurance Co Ltd the English Commercial Court had to consider the thorny issue of whether a no-assignment clause in a sale contract applied when the insured’s rights had been assigned to its insurer under an insurance policy. The Court held that the clause did apply although the decision considered and raised various complex questions which are likely to require further scrutiny from the higher English Courts.
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Court of Appeal decides Covid BI claim cannot be heard in England
In Al Mana Lifestyle Trading LLC & Ors v United Fidelity Insurance Company PSC & Ors , the Court of Appeal has held that the English court does not have jurisdiction to hear BI claims brought under various multi-risk insurance policies issued in the Middle East. In doing so, the Court of Appeal emphasised that initial impressions can be important when interpreting ambiguously worded contractual provisions. However, as this case illustrates, this is not always a helpful approach given that initial impressions may differ.
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 | Will Reddie Partner Editor | |
 | Kate Ayres Knowledge Counsel Co-editor |
